Indichip Semiconductors Ltd, with Japan’s Yitoa Micro Technology (YMTL), has signed an agreement with the Andhra Pradesh government to build India’s first private semiconductor manufacturing plant. The plant’s investment stands at Rs 14,000 crore, and the facility will produce Silicon Carbide (SiC) chips.

The Andhra Pradesh government is providing land at the Orvakal mega industrial hub in Kurnool, alongside infrastructure support. The facility’s initial production capacity is set at 10,000 wafers per month, with plans to scale up to 50,000 wafers per month in two to three years.

The memorandum of understanding (MoU) was signed by Indichip’s Managing Director Piyush Bichhoriya and Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board (APEDB). Witnessing the event were IT Minister Nara Lokesh and Industries Minister T.G. Bharath. Key figures from both organisations, including Indichip directors and YMTL representatives, were also present.

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Lokesh highlighted Andhra Pradesh’s readiness to attract advanced industries, citing the state’s policies and infrastructure. He noted the initiative as a stepping stone for strengthening India’s semiconductor presence globally. Bharath added that the collaboration will create jobs, give way to innovation, and encourage the growth of ancillary industries in the state.

Indichip’s Managing Director Piyush Bichhoriya described the project as a commitment to India’s technological progress, with a focus on energy-efficient and sustainable solutions. Director Dr. Sandeep Garg emphasised the role of Silicon Carbide chips in the semiconductor market and the potential to build a sustainable future.